Milliman 6-Month Buffered S&P 500 with Par Up Outcome Fund - May/Nov
The Milliman 6-Month Buffered S&P 500 with Par Up Outcome Fund seeks to participate in the return of the S&P 500 Index while buffering against the first 10% of losses, over a 6-month outcome period. The Fund participates 1:1 in Index losses beyond -10%, and participates in Index gains at the declared participation rate ("par rate"). The Fund can be held indefinitely, resetting at the end of each outcome period (approximately semi-annually).
Key FactsAs of 11/10/2022
|Starting Upside Participation1||76.67%|
|Outcome Period Length||6 Months|
|Outcome Period Start Date||May 10, 2022|
|Outcome Period Reset Date||Nov 10, 2022|
|Inception Date||May 10, 2022|
|Statutory Prospectus (Jan-Aug)|
|Statement of Additional Information (Jan-Aug)|
Previous Outcome Period Performance (05/10/2022 to 11/10/2022)3
Fixed Income Contribution-7.75%
The funds have characteristics unlike many other traditional investment products and may not be suitable for all investors. The potential returns an investor can receive from an investment in any of the above funds is subject to each fund's specific parameters (i.e., cap, participation rate, buffer, floor, and spread). There is no guarantee that the outcomes for an outcome period will be realized. A shareholder may lose their entire investment. For more information regarding whether an investment in these funds is right for you, please see the funds' prospectus.
Investors purchasing shares of a fund using this strategy after an outcome period has begun may experience very different results than the fund's investment objective. Following the initial outcome period, each subsequent outcome period will begin on the tenth day of the month the fund was incepted. After the conclusion of an outcome period, another will begin. Depending upon market conditions at the time of purchase, investors who purchase shares after the outcome period has begun may also lose their entire investment. An investment in the fund is only appropriate for investors willing to bear those losses.
1. Unlike other investment products, the potential returns an investor can receive from an investment in a participation rate fund are subject to the participation rates. This means that if the reference index experiences gains for the outcome period, an investor in the fund will only experience those gains up to the applicable participation rate. Investors who purchase shares during the outcome period will experience different results than those who hold over the entire outcome period (with respect to the FLEX Options exposure). In certain market conditions, the performance of the underlying fixed income assets and options positions could cause the fund to underperform relative to the reference indices, which could further limit fund gains below the participation rates, notwithstanding any performance of the reference Indices in excess of the participation rates.
2. The Buffer is not operative against losses in the Collateral Portfolio, which is comprised of fixed income securities and instruments providing exposure to fixed income securities. If the Collateral Portfolio experiences losses, it could have the effect of reducing the impact of, or completely eliminating, the buffer on the fund's S&P 500 Index exposure. In certain market conditions, the performance of the Collateral Portfolio could cause the fund's to significantly underperform the S&P 500 Index. Investors who purchase shares at the beginning of the outcome period may lose their entire investment. Investors who purchase shares after the outcome period has begun may also lose their entire investment.
3. The results shown are historical, for informational purposes only, and do not guarantee future results. Any reference to a market index is included for illustrative purposes only, as it is not possible to directly invest in an index. Indices are unmanaged, hypothetical vehicles that serve as market indicators and do not account for the deduction of management fees or transaction costs generally associated with investable products, which otherwise have the effect of reducing the results of an actual investment portfolio.
4. Each Fund maintains a collateral portfolio comprised of fixed income securities, including money market funds and/or cash, and/or exchange-traded funds ("ETFs") investing in such fixed income securities (the "Collateral Portfolio"). The performance of the Collateral Portfolio can increase or decrease the overall performance of a Fund irrespective of the performance of the referenced index or applicable parameter. This means that the performance of the Fund at the end of its term may be greater than or less than the referenced index's performance. It is possible in certain market scenarios that the performance of the Collateral Portfolio can partially, or in some cases, completely negate positive referenced index performance resulting in negative Fund performance at the end of its term. Alternatively, the performance of the Collateral Portfolio may result in the Fund outperforming the referenced index resulting in additional positive Fund performance at the end of its term.
Investing involves risks. Loss of principal is possible. The funds face numerous market risks, including: fixed income risk, active markets risk, participation rate change risk, capped upside return risk, correlation risk, liquidity risk, management risk, market risk, non-diversification risk, operation risk, options risk, FLEX options risk, trading issues risk, upside participation risk and valuation risk.
The fund will utilize FLEX Options issued and guaranteed for settlement by the Options Clearing Corporation (OCC). In the unlikely event that the OCC becomes insolvent or is otherwise unable to meet its settlement obligations, the fund could suffer significant losses. Additionally, FLEX Options may be less liquid than standard options. In a less liquid market for the FLEX Options, the fund may have difficulty closing out certain FLEX Options positions at desired times and prices. The values of FLEX Options do not increase or decrease at the same rate as the reference asset and may vary due to factors other than the price of reference asset.
Any reference to a market index is included for illustrative purposes only, as it is not possible to directly invest in an index. Indices are unmanaged, hypothetical vehicles that serve as market indicators and do not account for the deduction of management fees or transaction costs generally associated with investable products, which otherwise have the effect of reducing the results of an actual investment portfolio.
The fund invests in fixed income assets, from which a portion of the expected yield is derived to support the fund's overall investment strategy. This is atypical from a traditional investment in fixed income assets, whereby the investor directly receives income from the fixed income positions. Because the fund invests in fixed income assets, some credit risk is introduced, and the strategy may not achieve its desired objective.
Advanced Outcomes Annuity offers structured outcome strategies with underlying funds that have characteristics unlike many other traditional investment products and may not be suitable for all investors. There is no guarantee that the outcomes for a specific fund term will be realized. For more information regarding whether an investment in these funds is right for you, please see the product and fund prospectuses.
Variable annuities are long-term investments designed for retirement. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may reduce benefits available under the contract, as well as the amount available upon a full surrender. Withdrawals of taxable amounts are subject to ordinary income tax and if taken prior to age 59½, an additional 10% federal tax may apply.
An investment in Advanced Outcomes Annuity involves investment risk, including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested. Products and features may vary by state and may not be available in all states or firms. We reserve the right to change fees for features described in this material; however, once a contract is issued, the fees will not change. The purchase of Advanced Outcomes Annuity is not required for, and is not a term of, the provision of any banking service or activity.
This material is general in nature, was developed for educational use only, and is not intended to provide financial, legal, fiduciary, accounting or tax advice, nor is it intended to make any recommendations. Applicable laws and regulations are complex and subject to change. Please consult with your financial professional regarding your situation. For legal, accounting or tax advice consult the appropriate professional.
All contract and optional benefit guarantees are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased.
Advanced Outcomes Annuity is sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds, which should be considered carefully before investing. A prospectus may be obtained by calling 1-877-445-1262. Investors should read the prospectus carefully before investing.
Contracts and features may vary by state or may not be available in all states.